Investment Management for Non-profit Organizations
Expert-defined terms from the Professional Certificate in Financial Management for Non-profits course at Stanmore School of Business. Free to read, free to share, paired with a professional course.
Absolute Return is a measurement of the total return of an investment ove… #
It is used to evaluate the performance of an investment manager or a fund. In the context of non-profit organizations, absolute return is a key concept in investment management as it helps to assess the performance of their investment portfolios. Related terms include Relative Return and Total Return.
Active Management is an investment approach that involves a professional… #
This approach is often used by non-profit organizations to manage their investment portfolios, as it allows for more control and flexibility. Related terms include Passive Management and Investment Strategy.
Annualized Return is a calculation of the return of an investment over a… #
This concept is important in investment management for non-profit organizations, as it helps to evaluate the performance of their investments over time. Related terms include Total Return and Compound Return.
Asset Allocation is the process of dividing an investment portfolio among… #
This concept is critical in investment management for non-profit organizations, as it helps to balance risk and potential return. Related terms include Diversification and Portfolio Management.
Asset Class is a category of investments that have similar characteristic… #
Understanding asset classes is essential in investment management for non-profit organizations, as it helps to make informed decisions about portfolio construction. Related terms include Asset Allocation and Portfolio Diversification.
Benchmark is a standard or reference point used to measure the performanc… #
In the context of non-profit organizations, benchmarks are used to evaluate the performance of their investment portfolios and make informed decisions about investment strategy. Related terms include Performance Measurement and Investment Evaluation.
Capital Preservation is an investment objective that prioritizes protecti… #
This approach is often used by non-profit organizations, as it helps to ensure that their assets are preserved for future generations. Related terms include Capital Appreciation and Risk Management.
Capital Appreciation is an investment objective that seeks to increase th… #
This approach is also used by non-profit organizations, as it helps to grow their assets and achieve their long-term goals. Related terms include Capital Preservation and Investment Growth.
Cash Flow is the movement of money into or out of an investment or organi… #
In the context of non-profit organizations, cash flow is critical in investment management, as it helps to ensure that the organization has sufficient liquidity to meet its obligations. Related terms include Liquidity and Financial Management.
Compound Return is a calculation of the return of an investment over a gi… #
This concept is important in investment management for non-profit organizations, as it helps to evaluate the long-term performance of their investments. Related terms include Annualized Return and Total Return.
Correlation is a statistical measure that describes the relationship betw… #
In the context of non-profit organizations, correlation is critical in investment management, as it helps to identify potential risks and opportunities.
Diversification is the process of spreading investments across different… #
This concept is essential in investment management for non-profit organizations, as it helps to balance risk and potential return. Related terms include Asset Allocation and Portfolio Management.
Donor #
Advised Fund is a type of charitable fund that allows donors to make a charitable contribution and then recommend grants to various charities over time. In the context of non-profit organizations, donor-advised funds are an important source of funding and support. Related terms include Philanthropy and Charitable Giving.
Efficient Frontier is a concept in investment management that refers to t… #
This concept is critical in investment management for non-profit organizations, as it helps to identify the most effective investment strategies. Related terms include Portfolio Optimization and Risk Management.
Endowment is a fund or pool of assets that is invested to generate income… #
In the context of non-profit organizations, endowments are an important source of funding and support. Related terms include Investment Management and Financial Sustainability.
Endowment Spending Policy is a guideline that outlines the rules and proc… #
This concept is critical in investment management for non-profit organizations, as it helps to ensure that the endowment is preserved for future generations. Related terms include Endowment Management and Financial Sustainability.
ESG Investing is an investment approach that considers Environmental, Soc… #
This approach is increasingly popular among non-profit organizations, as it helps to align their investments with their values and mission. Related terms include Socially Responsible Investing and Sustainable Investing.
Expected Return is a calculation of the anticipated return of an investme… #
This concept is important in investment management for non-profit organizations, as it helps to evaluate the potential performance of their investments. Related terms include Risk-Return Tradeoff and Investment Strategy.
Fiduciary Duty is a legal obligation that requires investment managers an… #
This concept is critical in investment management, as it helps to ensure that investments are managed in a responsible and ethical manner. Related terms include Investment Management and Financial Governance.
Financial Governance is the system of policies, procedures, and practices… #
This concept is essential in investment management for non-profit organizations, as it helps to ensure that financial decisions are made in a responsible and transparent manner.
Financial Sustainability is the ability of a non #
profit organization to maintain its financial health and stability over time, often through a combination of fundraising, investment management, and financial planning. This concept is critical in investment management for non-profit organizations, as it helps to ensure that the organization can achieve its mission and goals.
Fundraising is the process of soliciting and securing donations, grants,… #
This concept is essential in investment management for non-profit organizations, as it helps to ensure that the organization has sufficient resources to achieve its mission and goals.
Grantmaking is the process of awarding grants to various charities, organ… #
In the context of non-profit organizations, grantmaking is an important way to support their mission and goals.
Impact Investing is an investment approach that seeks to generate both fi… #
Impact Investing is an investment approach that seeks to generate both financial returns and positive social or environmental impact, often through investments in companies, organizations, or projects that address social or environmental challenges.
Investment Committee is a group of individuals responsible for overseeing… #
This concept is critical in investment management for non-profit organizations, as it helps to ensure that investments are managed in a responsible and effective manner.
Investment Management is the process of managing and overseeing the inves… #
This concept is essential in investment management for non-profit organizations, as it helps to ensure that investments are managed in a responsible and effective manner. Related terms include Financial Governance and Financial Sustainability.
Investment Objective is a statement that outlines the goals and prioritie… #
This concept is critical in investment management for non-profit organizations, as it helps to guide investment decisions and ensure that the portfolio is aligned with the organization's mission and goals. Related terms include Investment Strategy and Risk Management.
Investment Policy is a document that outlines the guidelines and procedur… #
Investment Policy is a document that outlines the guidelines and procedures for managing an investment portfolio, often including the investment objective, risk tolerance, and asset allocation.
Investment Portfolio is a collection of investments held by a non #
profit organization, often including a mix of assets such as stocks, bonds, and cash. Related terms include Asset Allocation and Diversification.
Investment Strategy is a plan or approach for managing an investment port… #
This concept is essential in investment management for non-profit organizations, as it helps to guide investment decisions and ensure that the portfolio is aligned with the organization's mission and goals. Related terms include Investment Objective and Risk Management.
Liquidity is the ability to quickly and easily convert an investment into… #
This concept is critical in investment management for non-profit organizations, as it helps to ensure that the organization has sufficient liquidity to meet its obligations. Related terms include Cash Flow and Financial Management.
Mission #
Related Investing is an investment approach that seeks to align an organization's investments with its mission and values, often through investments in companies, organizations, or projects that address social or environmental challenges. Related terms include Impact Investing and Socially Responsible Investing.
Non #
Correlated Asset is an investment that has a low correlation with other assets in a portfolio, often providing a diversification benefit.
Operating Budget is a financial plan that outlines the projected income a… #
This concept is critical in investment management for non-profit organizations, as it helps to ensure that the organization has sufficient resources to achieve its mission and goals. Related terms include Financial Management and Financial Sustainability.
Passive Management is an investment approach that involves tracking a mar… #
This approach is often used by non-profit organizations, as it can be a cost-effective and efficient way to manage investments. Related terms include Active Management and Investment Strategy.
Performance Measurement is the process of evaluating the performance of a… #
This concept is critical in investment management for non-profit organizations, as it helps to assess the effectiveness of their investment strategies. Related terms include Investment Evaluation and Benchmarking.
Philanthropy is the practice of giving or donating to charitable causes,… #
This concept is essential in investment management for non-profit organizations, as it helps to support their mission and goals. Related terms include Charitable Giving and Grantmaking.
Portfolio Management is the process of overseeing and managing an investm… #
Portfolio Management is the process of overseeing and managing an investment portfolio, often including the selection of investments, asset allocation, and risk management.
Portfolio Optimization is the process of constructing an investment portf… #
This concept is essential in investment management for non-profit organizations, as it helps to identify the most effective investment strategies. Related terms include Efficient Frontier and Risk Management.
Proxy Voting is the process of exercising the right to vote on behalf of… #
This concept is critical in investment management for non-profit organizations, as it helps to ensure that their investments are aligned with their values and mission. Related terms include Shareholder Activism and Corporate Governance.
Real Assets are investments in tangible assets such as real estate, commo… #
Related terms include Alternative Investments and Diversification.
Relative Return is a measurement of the return of an investment relative… #
Related terms include Absolute Return and Total Return.
Risk Management is the process of identifying, assessing, and mitigating… #
Related terms include Investment Strategy and Portfolio Management.
Risk #
Return Tradeoff is the concept that higher returns often come with higher levels of risk, and that investors must balance their desire for returns with their tolerance for risk.
Socially Responsible Investing is an investment approach that considers s… #
Related terms include ESG Investing and Sustainable Investing.
Sustainable Investing is an investment approach that seeks to generate lo… #
Related terms include ESG Investing and Socially Responsible Investing.
Time Horizon is the length of time over which an investment is expected t… #
Time Horizon is the length of time over which an investment is expected to be held, often influencing the investment strategy and asset allocation.
Total Return is a measurement of the total return of an investment over a… #
This concept is essential in investment management for non-profit organizations, as it helps to evaluate the performance of their investments. Related terms include Absolute Return and Relative Return.
Value at Risk is a statistical measure that estimates the potential loss… #
This concept is critical in investment management for non-profit organizations, as it helps to identify potential risks and opportunities. Related terms include Risk Management and Portfolio Optimization.